How AR Can Bridge the Gap Between Customer Needs and Corporate Risk

By Tracy Mitchell, Trinity Logistics’ AR Director

Approving a client’s credit request isn’t always straightforward. Especially in this economy — comprised of a blend of volatile interest rates, uneven demand across industries, and tighter credit environments — the job can be challenging. 

The key is to remain proactive, build strong customer relationships, and sharpen your instincts for identifying red flags early on.

Sometimes the answer isn’t in the numbers at all but in the conversations you have. Emails are fine for documentation, but nothing replaces a personal phone call to a customer’s leadership. A five-minute discussion can reveal details about upcoming projects, delayed receivables on their end, or even a willingness to work out a plan that no spreadsheet will ever show you. It also signals that you see them as more than just a payment source—you see them as a valued partner.

What to Look for When Monitoring Payment Data

Observing account behavior is one of the best early warning systems you have. Small shifts in how and when a customer pays are often the first hints of bigger trouble. Maybe they’ve switched from ACH to credit card, or their payments have become monthly instead of bi-weekly. Maybe their volume hasn’t decreased, but the size of their payments has. Is this due to a larger change in their AP processes or is it something more? They’re all signs you should be asking more questions.

The more you know about your customers, the stronger your position. That means looking beyond AP. What does the company actually do? What projects are they working on? Where do they see their business headed? Who can you call if things go sideways? Understanding the business itself not only helps you manage risk but also shows the customer that you’re invested in their success.

What about bankruptcy? There’s no crystal ball that can predict it perfectly, but you can connect the dots. Credit score downgrades, industry news, and chatter from AP contacts all help paint the picture. Publications and trade journals are another great resource for information; sometimes the warning signs are hiding in plain sight. Look for the details.

Even something as simple as a change in payment method can be telling. Credit card payments aren’t always a problem, but if a customer who’s always paid by check or ACH suddenly switches, it’s worth asking why. It may be a sign of tightening cash flow, and knowing the reason helps you decide how to move forward without being blindsided later.

What about when the usual playbook doesn’t work? That’s where out-of-the-box thinking comes in. Whether it’s splitting large invoices into smaller chunks, setting up structured payment plans, or working with credit insurance for high-risk accounts, flexibility can make all the difference. It could mean a 50/50 split — prepaying and issuing partial credit. Creativity, paired with solid judgment, can keep money flowing without sacrificing your company’s stability.

An important tool at your disposal is the use of extended terms. While it’s not a decision to make lightly, there are situations where granting more time makes sense. It’s one way to invest in a solid customer relationship.

If a customer has a proven track record of timely payments and just needs temporary breathing room, it can strengthen — or even create — loyalty. On the flip side, if their history shows chronic delays, it might be time to reconsider before digging the hole deeper. These decisions are best made with input from leadership and sales, so the risk and any changes are transparent across the board.

Leverage Your Relationship with Sales

Sales often hears things before AR does, so syncing with them can give you a leg up. Your relationship with sales can be the link between risk management and growth. Sales teams often hear directly about customer struggles, new projects, or shifting budgets.

Don’t forget that they have their own valuable relationships and those relationships translate into information the AP department may not be privy to. By collaborating with them, you can approach customers as a united front, which makes it much easier to stay ahead of the game and make better risk decisions.

At the end of the day, getting to “yes” in today’s economy means more than sending invoices and chasing payments. It’s about understanding customers on a deeper level, spotting red flags early, and being creative enough to find solutions that work for everyone.

AR professionals aren’t just number crunchers—we’re relationship builders, risk managers, and problem solvers. With vigilance, collaboration, and flexibility, you can protect your company’s cash flow while still helping your customers succeed. That balance is what turns challenges into opportunities and keeps the yes within reach.

The opinions shared above are those of Tracy Mitchell, not necessarily those of Trinity Logistics.